Morrisons has “moved beyond the pilot phase” with internet auctions and begun to establish them as a standard procurement tool across the business.

Speaking as the company unveiled its full-year results, joint MD Bob Stott said online auctions were now being used for a range of own label and commodity areas.

The company had spent some time in the trial phase, and only used auctions on carefully selected products and services, emphasised Stott. “They are particularly useful in areas where we have overseas supplier situations. However, we have no plans to use them for promotional slots on brands.”

While Morrisons was exploring factory gate pricing with some suppliers, it was not a priority, he added. “We have always done a bit, and we obviously want to maximise the efficiency of our fleet, but it’s not a must.”

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